Volkswagen’s Global Sales will Decline by 8% in 2021

EVs and plug-in hybrids grew by 97 percent and 33 percent, respectively, while fossil fuel-powered vehicles saw a drop in sales.

As a result of the ongoing global semiconductor shortage, Volkswagen’s sales dropped by about 8% in 2021. It did, however, see a significant increase in sales of all electrified models.

  • The carmaker sold over 48 lakh vehicles in 2021; an eight percent drop YoY
  • Carmaker has an order backlog of over five lakh in Europe alone
  • China witnessed highest rise in EV sales; up 437 percent YoY

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COVID-19 Wreaks Havoc on The Semiconductor Industry

The German automaker sold 48,97,000 vehicles worldwide in 2020, down from 53,28,000 in 2020, a 15.1 percent drop due to the COVID-19 pandemic.

Volkswagen attributed the latest drop to a shortage of semiconductors, as well as temporary factory closures that hampered production of various models throughout the year.

Volkswagen's Global Sales will Decline by 8% in 2021
Volkswagen’s Global Sales will Decline by 8% in 2021

“All factories were affected – some more, some less,” Volkswagen told our sister publication Autocar UK. The main Wolfsburg site, for example, was hit harder than the electric car plant in Zwickau, according to the report.

Volkswagen said the impact of the production constraints would not be “completely compensated” until 2021, and that the first half of this year will “remain highly volatile and challenging” as long as the shortages continue.

It claimed a record European order backlog of 5,43,000 vehicles, but expects that number to drop as production rates stabilise throughout the year. Volkswagen stressed that part of the sales shortfall is made up of cars that “are not lost, but will be produced as soon as possible.”

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The Number of Electric Vehicle Sales has Doubled

While overall sales are down, Volkswagen is celebrating a 73 percent increase in plug-in vehicle sales year over year. Plug-in hybrid (PHEV) sales increased by 33%, while electric vehicle (EV) sales nearly doubled, with 2,63,000 sold globally.

Volkswagen CEO Ralf Brandstatter hinted that this trend will continue as the brand’s electrification progresses.

“In a very short time, we’ve risen to the top of Europe’s all-electric vehicle rankings,” he said. “We will continue to accelerate the e-mobility offensive with our Accelerate strategy and the expansion of the model portfolio.” The ID.Buzz will represent yet another emotional model in our ID family before the end of the year.”

Volkswagen's Global Sales will Decline by 8% in 2021
Volkswagen’s Global Sales will Decline by 8% in 2021

Read Also: In 2021, Rolls-Royce Sells More Than Ever Before

The Identification Number

Buzz van is the ID’s fourth vehicle in Europe, and it will be available in commercial and passenger-carrying versions later this year, following a reveal in the coming weeks.

Electric and hybrid vehicles accounted for over 7% of global deliveries and nearly a fifth in Europe. A quarter of all cars sold in Volkswagen’s home market had some form of plug-in drivetrain.

The popularity of electric vehicles has grown the most in China, where Volkswagen sold 437 percent more EVs in 2020 than in 2010. It expects “a further significant increase in 2022.”

Read Also: The Jeep Renegade Gets a Makeover for The Second Time

Volkswagen’s Presence in India

The Tiguan SUV was released last month, and the Taigun SUV was released a few months before that. It’s also getting ready to launch the Virtus, a version of the Slavia sedan that Skoda recently unveiled.

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